PSP 411 has the info:
…it does seem that users might be able to pack more video per megabyte with AVC if there’s this much bitrate legroom left over. So far, the improvements are only minor, but we’d like to see how this new codec looks when it’s really put to the test by experienced video makers.
I need to check into this new format. I wonder if Kinoma Producer can encode to AVC…
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CK,
arkowi, regular commenter from TUAW here. i took your advice earlier in the month in the TUAW chatroom and i have a psp now. i am really enjoying the 2.0 firmware. I have been doing some tests for higher quality video but i have not had much luck. if i get anything done i’ll come back here and post it up, i am doing to devote several hours to it tonight.
-arkowi